Description

An expose on how the rise of China will affect the American way of life The End of Cheap China is a fun, riveting, must-read book not only for people doing business in China but for anyone interested in understanding the forces that are changing the world. Many Americans know China for manufacturing cheap products, thanks largely to the country's vast supply of low-cost workers. But China is changing, and the glut of cheap labor that has made everyday low prices possible is drying up as the Chinese people seek not to make iPhones, but to buy them. Shaun Rein, Founder of the China Market Research Group, puts China's continuing transformation from producer to large-scale consumer - a process that is farther along than most economists think - under the microscope, examining eight megatrends that are catalyzing change in China and posing threats to Americans' consumption-driven way of life. Rein takes an engaging and informative approach to examining the extraordinary changes taking place across all levels of Chinese society, talking to everyone from Chinese billionaires and senior government officials to poor migrant workers and even prostitutes.
He draws on personal stories and experiences from living in China since the 1990s as well as hard economic data. Each chapter focuses on a different aspect of China's transformation, from fast-improving Chinese companies to confident, optimistic Chinese women to the role of China's government, and at the end breaks down key lessons for readers to take away. The End of Cheap China shows: How rising labor and real estate costs are forcing manufacturers of cheap Chinese products to close, relocate, or move up the value stream How a restructuring economy moving away from exports to domestic consumption, and rising incomes will create opportunities for foreign brands to sell products in China rather than just producing there How Chinese consumption will build pressure on the global commodities markets, causing both inflation and friction with other nations How China's economic transformation spells the end of cheap consumption for Americans China's days as a low cost production center are numbered. The End of Cheap China exposes the end of America's consumerist way of life and gives clear advice on how companies can succeed in the new world order.show more

Flap copy

China is known for manufacturing cheap products, thanks largely to the country's vast supply of low-cost workers. But China is changing, and the glut of cheap labor that has made everyday low prices possible is drying up, as the Chinese people seek not to make iPhones, but to buy them. This evaporating labor pool will disrupt supply chains and consumption habits around the world.Rein takes an engaging and informative approach to examining the changes taking place across all levels of Chinese society, talking to everyone from Chinese billionaires and senior government officials, to poor migrant workers, and even prostitutes. He draws on personal stories and experiences from living in China since the 1990s, as well as hard economic data. Each chapter focuses on a different aspect of China's transformation--from trailblazing Chinese companies to newly employed Chinese women to the role of China's government--and at the end breaks down key lessons for readers to take away. You'll learn: How rising labor and real estate costs are forcing manufacturers of cheap Chinese products to close, relocate, or move up the value stream How China's move away from exports to domestic consumption will create opportunities for foreign brands to sell products in China rather than just producing thereHow Chinese consumption will build pressure on the global commodities markets, causing both inflation and friction with other nationsHow China's economic transformation spells the end of cheap consumption for AmericansChina's days as a low-cost production center are numbered. "The End of Cheap China" exposes the end of our consumerist way of life, and gives clear advice on how companies can succeed in the new world order.show more

Review quote

"...brilliantly written, colourful, witty and well signposted, so that readers know the lessons they are meant to draw from each chapter before moving on to the next one. These writers will not be the last to offer an answer to the question of what makes China tick. But they could be among the best of them."-from "A Slice of the China Market" in The Financial Times "Rein combines elegant writing and methodical research. Years of working in China have given him access to important players. Incisive interviews with billionaires, business executives, government officials, and migrant workers guide the pulse of the narrative... essential reading."- USA Today "Must Read."- Consulting Magazineshow more

Back cover copy

Praise for "The End of Cheap China"""The End of Cheap China" is an indispensable guide to the rapid changes in China's economy and society. Shaun Rein has observed firsthand the developments that shape the attitudes and behavior of his own coming generation. His firm has analyzed, as well as helped shape, the markets he describes. A practical must-read for anyone dealing with China, doing business there, or simply trying to understand what is going on."--Ambassador Nicholas Platt, President Emeritus, Asia Society, author of "China Boys: How U.S. Relations with the PRC Began and Grew, A Personal Memoir""A core thesis behind the launching of my China fund in 2010 was that the drivers of China's economy were changing. Shaun Rein's new book examines these trends in detail and their important implications."--Anthony Bolton, President, Investments, Fidelity Worldwide Investment; Head, Fidelity China Special Situations PLC"Shaun Rein is a keen observer of contemporary China. He has an eye for the detail that unfolds a larger story. He is a student of Chinese culture and history and a practitioner of its present. He knows the markets and consumers of a maturing--but still dynamic--Chinese economy. As 'cheap China' comes to an end, Rein's insights are all the more valuable."--William C. Kirby, Spangler Family Professor of Business Administration, Harvard Business School, T. M. Chang Professor of China Studies, Harvard Universityshow more

About Shaun Rein

SHAUN REIN is the founder and Managing Director of the China Market Research Group, a leading strategic market intelligence firm that advises Fortune 500 companies, private equity firms, and hedge funds about profiting in China. Millions read his weekly CNBC column on business in China. He regularly appears on Bloomberg TV, CNBC, CBS News, CNN, and NPR, and is often featured in the Wall Street Journal , the Economist , the Financial Times , Bloomberg.com, and the New York Times .show more

Table of contents

Prologue ix Chapter 1 Chinese Billionaires Outnumber American Ones 1 Chapter 2 Cheap Chinese Labor? Not Anymore: China's Workers Are Demanding Better Pay and Better Conditions-And They Are Earning Them 19 Chapter 3 Stability Is the Key to Happiness: How China's Government Thinks and Why It Acts the Way It Does 39 Chapter 4 The Modern Chinese Woman 63 Chapter 5 Why Chinese Consider Kentucky Fried Chicken Healthful: China's Iffy Food Supply Chain Is Putting a Premium on Safe Food 85 Chapter 6 Understanding Corruption in China: What China's Underground Sex Trade Shows About Its Government 103 Chapter 7 China's Real Estate Sector: Boom or Bust or Something Else? 125 Chapter 8 Chinese Neo-Colonialism in Africa and the End of American Hegemony? 147 Chapter 9 China's Educational Sector: Preventing China From Cementing Its Superpower Status 171 Chapter 10 What the End of Cheap China Means for the Rest of the World 191 Epilogue 205 Acknowledgments 207 Index 209show more